JPMorgan's Dimon Warns Iran War Could Push Up Inflation and Interest Rates

Odaily News JPMorgan Chase CEO Jamie Dimon warned on Monday that the war in Iran could pose risks of oil and commodity price shocks, which might sustain inflation and push interest rates higher than current market expectations. The warning was issued in an annual letter to shareholders. Dimon said, "The challenges we face are enormous." He cited geopolitical risks including the Russia-Ukraine conflict and broader hostilities in the Middle East. "Now, due to the war in Iran, we also face the possibility of sustained and significant volatility in oil and commodity prices, and a reshaping of global supply chains, which could lead to more stubborn inflation and ultimately result in interest rates higher than current market expectations." Dimon said time will tell whether the war in Iran achieves U.S. objectives, adding that nuclear proliferation remains the greatest danger from Iran. Dimon also stated that the U.S. economy continues to show resilience, with consumers still earning and spending, albeit with some recent weakening, and businesses remaining healthy. However, he cautioned that substantial government deficit spending and past stimulus policies have fueled economic growth, while increased infrastructure spending remains a growing demand. (Jin10)